People and Organisational Change Significance of people & organizational change

Agenda People and Organizational Change in e-Governance Projects Implications of Change Management People related challenges in change management

People and Organisational Change There are three key levers of Change in Government reforms and initiatives People Change in attitude and behaviours to accept the change, New skills sets required to assimilate the new ways of working, a more flexible approach to working patterns and practices. Process Change in structure and processes to adopt to the new ways of working, business process design. Technology Application of Information and Communication Technologies to improve the service delivery to citizens, business and Government employees.

People and Organisational Change Change Management involves aligning the trinity of People, Process and Technology to strategy. Strategy People Process Technology Research shows that ‘Nine out of ten significant barriers to achieving successful change are people related’

Need for knowledge enhancement on new policies and processes People and Organisational Change Implications of Change Management in e-Governance Projects Key Result Areas Key Impact for People People determine the project success and it requires effective management of people related ‘soft’ and ‘hard’ aspects….. e-Governance Projects / Programmes Key Initiatives New Policy Framework New Roles and Change New Structure Need for knowledge enhancement on new policies and processes New Processes New Systems Need for new skill sets

Top ten barriers to change People and Organisational Change Management Top ten barriers to change 1. Inadequate resources 2. Poorly communicated strategy 3. Unclear definition of actions required to execute 4. Unclear accountabilities for execution 5. Organisational silos and culture blocking execution 6. Inadequate performance monitoring So lets’ just spend a few minutes looking at the most common barriers to change and most importantly the full realisation of benefits. Now lets turn the clock back a decade and see what the barriers were . Not too much difference? Reports and articles show similar statistics in 2004 as they did almost a decade ago on the number of transformation projects which fail to realise full suite of benefits substantially or partially 7. Inadequate consequences or rewards for failure or success 8. Poor senior leadership 9. Uncommitted leadership 10. Unapproved strategy

e-Governance and Barriers to Change People and Organisational Change e-Governance and Barriers to Change Organistional Structural Inertia: Rigid processes and systems Lack of common vision: There is no common understanding of the vision for change Group Inertia: Change in individual behaviors at times inhibited by the way the group works Threat to expertise: The implementation of ICT may be observed as a threat to the expertise of a specialized group. Threat to established power relationships: Perception of loss of power, authority and discretion. Individual Habit : Deep rooted ways of doing things and working in the government Security: Loss of feeling safe. Underlying Security & Suspicion Economic factors: Doubts around performance, productivity and pay issues. Lack of confidence in using the IT systems Fear of unknown: What will happen next? Will ICT implementation lead to my job becoming redundant? “Management of change issues and people perceptions becomes imperative in e-Governance projects.”

42% 27% 23% 4% 4% Leadership Organizational & Cultural Issues Almost 92 % of the challenges in a transformation exercise are around people issues Lack of Participation Ineffective Communication • Lack of ownership • Limited endorsement/ support • Poor planning & Control People Leadership 42% Organizational & Cultural Issues 27% Lack of involvement • Lack of Readiness • Lack of understanding • Lack of strategic alignment User Issues 23% Fear of Job loss/Change • Inadequate Skill development/ Training / Lack of resources • Unclear Roles and Responsibilities • Lack of user buy-in Process Process Issues 4% Weak / inadequate processes • Poor process alignment • Faulty data Technology Technology Issues 4% Faulty data • Integration Issues • Configuration Issues • Over complex technology

People related challenges in Change Management Mindset Communication People related challenges Skill sets People related challenges in Change Management relate to three important aspects: Mindset (Culture) Communication and Awareness (Internal and External stakeholders) Skill-sets (Human capital development and life-long learning) 75% of all organizational change programs fail, largely because employees feel left out of the process and end up lacking the motivation, skills and knowledge to adopt new systems and procedures

Essential ‘People’ components of Change Management Make sure all stakeholders are identified, relationships are managed; stakeholders get information about progress, programme needs, and benefits tracking, their feedback is received and incorporated in the programme Stakeholder Management Provide planned communication throughout the organization and execute this along effective means and channels. Make sure that communication reaches the target audience in time and provides just enough information for that audience so that they are informed on and excited about the change and effectively implement it Communication Provide training materials, trainers and logistics; ensure the target audiences are trained in the new ways of working (including data, processes, systems/tools and governance) just in time and just enough Training

People related challenges in Change Management Normally, decisions are made by the management without taking inputs from staff who are expected to change their behaviour People are willing to change if they: Understand and accept the reasons Have a say in the way their jobs get restructured / affected Behavioral change is most likely to occur when organizations connect with human nature rather than oppose it

Importance of ‘mindset’ in Change Management Mindset is the way we think, which reflects in our action For managing change, change in mindset is important Shift in mindset required to focus on new ways, techniques, requirements and outcomes Experts say that half the battle is won if people develop the right mindset and thereby focus their efforts towards the change initiative Change in mindset is also essential for sustaining change / making change stick

Challenge: Organisational Culture / mindset Some of the typical challenges / barriers caused due to culture / mindset issues are: Employees believe that ICT would replace them and cause job losses Reluctance to give up traditional methods of working and adopt new ones Suspicion about the security of IT systems Lack of confidence in using the IT system Change in mindset of entire Government entities required The best way to meet the ‘mindset’ related challenges is by developing an appropriate communication strategy.

Style vs Degree of Change Collaborative Supportive workforce Consultative Collaborative - The target population are engaged in the change process, typically through cascading workshops or meetings. They will be kept up to date on the issues. Their views will be actively sought and acted upon. Feedback will demonstrate how their input has been acted upon. Consultative - The target population is informed about the changes and their views are sought. Directive - The workforce is informed about the changes and why those changes are important. Coercive - The workforce is told that they must obey the new instructions. Directive Resistant workforce Coercive Fine Tuning Incremental Transformational Degree of change

People and Organisational Change Collaborative - The target population are engaged in the change process, typically through cascading workshops or meetings. They will be kept up to date on the issues. Their views will be actively sought and acted upon. Feedback will demonstrate how their input has been acted upon. Consultative - The target population is informed about the changes and their views are sought. Directive - The workforce is informed about the changes and why those changes are important. Coercive - The workforce is told that they must obey the new instructions.

When do change management activities begin?   Research shows an overwhelming bias toward initiating change management early in the project. Change management activities that are launched at the beginning of a project can be more proactive in addressing the people side of change. When change management is brought in as an add-on late in the project, it is typically to 'fight fires' and help with damage control. Stages

People and Organisational Change Organisations don’t adapt to change, People do. Human behavior is complex Change initiatives face varying levels of resistance and questioning of motive of change People resist change only when they feel that change is being imposed on them, without their consent Costs of ignoring behavioral risk could be significant in the current economic context